Reserve for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2022

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Analysis of losses and loss adjustment expenses and reconciliation of beginning and ending reserve balances

The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and ending reserve for losses and loss adjustment expenses:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Reserve for losses and loss adjustment expenses at beginning of period	$	18,194,324	$	17,196,648	$	17,757,156	$	16,513,929
Unpaid losses and loss adjustment expenses recoverable	5,686,348		4,146,020		5,599,231		4,314,855
Net reserve for losses and loss adjustment expenses at beginning of period	12,507,976		13,050,628		12,157,925		12,199,074
Net incurred losses and loss adjustment expenses relating to losses occurring in:
Current year	1,863,519		1,348,528		4,280,048		3,812,381
Prior years	(180,823)		(122,509)		(493,861)		(223,431)
Total net incurred losses and loss adjustment expenses	1,682,696		1,226,019		3,786,187		3,588,950
Net losses and loss adjustment expense reserves of acquired business (1)	—		104,307		—		104,307
Retroactive reinsurance transactions (2)	—		—		—		(183,893)
Impact of deconsolidation of Somers (3)	—		(1,460,611)		—		(1,460,611)
Net foreign exchange (gains) losses and other	(243,387)		(78,152)		(524,682)		10,818
Net paid losses and loss adjustment expenses relating to losses occurring in:
Current year	(226,575)		(208,923)		(463,847)		(432,348)
Prior years	(538,967)		(417,368)		(1,773,840)		(1,610,397)
Total net paid losses and loss adjustment expenses	(765,542)		(626,291)		(2,237,687)		(2,042,745)
Net reserve for losses and loss adjustment expenses at end of period	13,181,743		12,215,900		13,181,743		12,215,900
Unpaid losses and loss adjustment expenses recoverable	6,106,548		5,115,147		6,106,548		5,115,147
Reserve for losses and loss adjustment expenses at end of period	$	19,288,291	$	17,331,047	$	19,288,291	$	17,331,047

(1)     Represents activity related to the Company’s acquisitions in the 2021 period of the Westpac Lenders Mortgage Insurance Limited and Somerset Bridge Group Limited, Southern Rock Holdings Limited and affiliates.

(2)     During the 2021 first quarter, the Company entered into a reinsurance to close and other related agreements with Premia Managing Agency Limited (“Premia”), in connection with the 2018 and prior years of account related to the acquisition of Barbican Group Holdings Limited (“Barbican”).

(3)    See note 11.